Question - Ferguson Inc. provided the following information:
April May June
Projected merchandise purchases $92,000 $78,000 $66,000
Ferguson pays 40% of merchandise purchases in the month purchased and 60% in the following month.
General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of this amount. Ferguson pays operating expenses in the month incurred.
Ferguson makes loan payments of $4,000 per month of which $450 is interest and the remainder is principal.
Instructions - Calculate budgeted cash disbursements for May.